Professional Documents
Culture Documents
characteris,cs
of
3
papers
Milligan-Smart
(M-S):
es,mate
behavioural
responses
(reported
incomes)
of
top
earners,
to
compute
maximum
top
marginal
tax
rates
(MTRs)
using
formula
Other
two
papers
assume
NO
behavioural
responses
Murphy-Veall-Wolfson
(M-V-W):
compute
progressivity
of
tax
expenditures
for
top
earners
(standard
assn)
Heisz-Murphy
(H-M):
decompose
redistribu,ve
impact
of
selected
tax
and
transfer
programs
into
measures
of
progressivity
and
size
The
laKer
two
papers
require
inquiry
into
behaviour
and
economic
incidence
for
meaningful
policy
assessment
Findings
from
all
papers
require
broader
economic
and
scal
impact
assessments
for
useful
policy
guidance
More
incidence!
Broadening
taxable
income
base
(e.g.
employee
stock
op,ons
as
in
M-V-W)
may
reduce
poten,al
avoidance/
tax-planning
(reduces
)
but
incidence
s,ll
falls
on
employers
if
interna,onally
compe,,ve
for
top
management
or
have
tax-compensa,on
programs
Issues
of
mobility
of
labour
cross-provincial
vs.
mobility
between
Canada
and
other
countries
(esp.
U.S.)
Cultural
issues
(e.g.
Quebec,
Atlan,c)
aect
mobility
Hence,
interpreta,on
of
all
ndings
in
M-V-W
and
H-S
requires
deeper
analysis
of
incidence
issues,
impacts
on
broader
measures
of
impacts
on
total
tax
revenues
from
all
sources,
secondary
impacts
on
other
(beKer-quality
but
not
highest-paying)
industries
and
jobs